London midday: Stocks nudge up but gains muted amid tariff uncertainty

(Sharecast News) - London stocks had popped into the black by midday on Monday but gains were muted as investors mulled the latest twists and turns in the Trump tariff saga.

The FTSE 100 was up 0.1% at 8,829.12, as US President Donald Trump threatened to impose a new 10% tariff on any country that aligns itself with the "anti-American" BRICS group.

Writing on his Truth Social site, Trump said "there will be no exceptions to this policy".

Dan Coatsworth, investment analyst at AJ Bell, said: "Countries and regions are bracing themselves for trade letters from the US as the Trump administration moves to the next phase of its tariff regime.

"Trump might be treating it in the same way as a final notice letter - get your act together and agree to a deal or be put back on the higher tariff rates outlined in the Liberation Day announcement.

"We now have some clarity on how the system will work. Rather than a hard deadline of 9 July where all countries without a trade deal will revert to the higher rates announced on 2 April, the new tariff regime begins on 1 August. More countries are expected to confirm trade deals in the coming days, and extensions are possible beyond the 9 July hurdle for countries where negotiations are deemed to be going well.

"In theory, this clarity - albeit still slightly murky rather than crystal clear - should have had a positive reception from investors as the hard deadline has effectively been pushed back three weeks. However, markets were mixed across Asia and Europe on Monday, with futures prices implying a red day for Wall Street later on.

"What's troubling investors is Trump potentially moving the goalposts yet again. He has form in constantly coming up with new terms and conditions and has now threatened an extra 10% tariff on countries who align themselves with 'anti-American policies' of BRICS nations.

"He also suggests some tariffs could reach up to 70%, greater than the previous maximum amount on the Liberation Day menu. Investors would much prefer one set of rules and for the Trump administration to stick to them."

On home shores, the latest data from Halifax showed that house prices were flat on the month in June, following a 0.3% dip in May.

On the year, house prices were up 2.5% last month, down from 2.6% growth in May.

The average price of a property stood at �296,665 in June, down from �296,782 the month before.

Amanda Bryden, head of Mortgages at Halifax, said: "The market's resilience continues to stand out and, after a brief slowdown following the spring stamp duty changes, mortgage approvals and property transactions have both picked up, with more buyers returning to the market. That's being helped by a few key factors: wages are still rising, which is easing some of the pressure on affordability, and interest rates have stabilised in recent months, giving people more confidence to plan ahead.

"Lenders have also responded to new regulatory guidance by taking a more flexible approach to affordability assessments. Over the last two months, we've already helped an additional 3,000 buyers - including more than 1,000 first-time buyers - access a mortgage they wouldn't have qualified for before.

"Of course, challenges remain. Affordability is still stretched, particularly for those coming to the end of fixed-rate deals. The economic backdrop also remains uncertain; while inflation has eased, it's still above target, and there are signs the jobs market may be softening.

"But with markets pricing in two more rate cuts from the Bank of England by year end, and the average rate on newly drawn mortgages now at its lowest since 2023, we continue to expect modest house price growth in the second half of the year."

In equity markets, Shell was the biggest loser on the FTSE 100 as the oil giant said second-quarter gas and oil results would be significantly lower than the previous quarter due to recent volatility. BP was also in the red.

Plus500 gained as it posted a 12% jump in second-quarter EBITDA to $91.3m.

Hospitality group SSP edged higher after saying it has opened public bidding for the IPO of its joint-owned Indian operations in a proposed stock market listing in Mumbai that could be worth up to �1.23bn.

In broker note action, Weir Group was a high riser after an upgrade to 'buy' at Citi.

Currys slumped, however, after a downgrade to 'sector perform' from 'outperform' at RBC Capital Markets, which said it was time to take profits after a strong run.

Market Movers

FTSE 100 (UKX) 8,829.12 0.07%

FTSE 250 (MCX) 21,602.02 0.21%

techMARK (TASX) 5,120.14 0.13%

FTSE 100 - Risers

3i Group (III) 4,134.00p 2.28%

Flutter Entertainment (DI) (FLTR) 20,620.00p 2.23%

Rolls-Royce Holdings (RR.) 979.60p 1.77%

Weir Group (WEIR) 2,544.00p 1.76%

Standard Chartered (STAN) 1,228.00p 1.74%

Games Workshop Group (GAW) 16,130.00p 1.57%

Melrose Industries (MRO) 530.40p 1.49%

Babcock International Group (BAB) 1,086.00p 1.21%

easyJet (EZJ) 529.00p 1.19%

Barclays (BARC) 334.40p 1.18%

FTSE 100 - Fallers

Shell (SHEL) 2,551.50p -2.91%

JD Sports Fashion (JD.) 88.42p -1.80%

BP (BP.) 372.85p -1.69%

Mondi (MNDI) 1,185.00p -1.17%

Glencore (GLEN) 299.35p -1.16%

Fresnillo (FRES) 1,478.00p -1.14%

SSE (SSE) 1,854.50p -0.75%

Persimmon (PSN) 1,201.50p -0.70%

United Utilities Group (UU.) 1,110.50p -0.63%

Pershing Square Holdings Ltd NPV (PSH) 4,116.00p -0.58%

FTSE 250 - Risers

Plus500 Ltd (DI) (PLUS) 3,364.00p 2.75%

Baltic Classifieds Group (BCG) 335.50p 2.44%

Volution Group (FAN) 607.00p 2.36%

TP Icap Group (TCAP) 284.00p 1.97%

Bytes Technology Group (BYIT) 362.00p 1.91%

Vietnam Enterprise Investments (DI) (VEIL) 624.00p 1.79%

XPS Pensions Group (XPS) 373.00p 1.77%

Jupiter Fund Management (JUP) 103.60p 1.77%

CMC Markets (CMCX) 253.00p 1.61%

SSP Group (SSPG) 189.40p 1.55%

FTSE 250 - Fallers

Currys (CURY) 116.90p -5.95%

Burberry Group (BRBY) 1,218.00p -3.56%

Raspberry PI Holdings (RPI) 471.10p -2.38%

Hochschild Mining (HOC) 266.00p -1.99%

Helios Towers (HTWS) 120.60p -1.95%

Close Brothers Group (CBG) 382.80p -1.85%

Aston Martin Lagonda Global Holdings (AML) 79.70p -1.54%

Foresight Solar Fund Limited (FSFL) 84.80p -1.28%

Harbour Energy (HBR) 197.50p -1.20%

Frasers Group (FRAS) 668.50p -1.18%